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TheCityUK’s response to the advice by the ECJ’s Advocate General on bonus caps

Chris Cummings, Chief Executive, TheCityUK, said

The UK Government was right to challenge EU legislation affecting pay as we believe that those who own any firm - its shareholders - should be the final arbiter on this decision. The Advocate General of the EU Court of Justice (ECJ) has ruled that HM Treasury’s challenge is invalid and we await with interest details of the ECJ’s final decision.

The UK is the pre-eminent global financial centre and given the financial and related professional services industry is the nation’s leading export earner, as well as its largest tax paying industry, TheCityUK encourages policymakers to ensure the UK remains an attractive place to establish and grow businesses. Rules that are more stringent in the UK than in other parts of the world risk leaving us at a competitive disadvantage, threatening our economic recovery and reducing job opportunities. These rules apply to UK banks regardless of where they do business in the world - competitors can offer pay packages unhindered by these restrictions and can therefore be more competitive.

TheCityUK would like to see regulators and Government sustain a solution that protects the City’s international attractiveness while safeguarding financial stability.